Awards & Engraving

January '20

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30 • A&E JANUARY 2020 and the cost of trial and error that comes along with perfecting your production of a new product. Other Costs: This is where you make sure that you are making money and allowing yourself to grow. This number also gives us the comfort of not having everything above down to a complete science. This is where you factor in your overhead, inventory carrying costs, payroll taxes, and other potential costs that occur with every business. DOCUMENT EVERYTHING Obviously the more you document all of these items over time, the better and more accurate this number will be, but by at least covering all of these bases, you give yourself the groundwork to make sure you make money. Then, how you use this number is up to you. My hope is that you remember we are in a perceived-value industry, so our goal is to show our customers our value and get a nice profit margin, not the lame excuse of, "My area won't pay that for a mug." Remember, if someone is selling a white shirt for $120 or more, you can sell a per- sonalized coffee cup for $15 to $20 easily. But without knowing what the actual cost to make it is, you could make the mistake of doubling your blank product cost and losing money on every order. It just takes a little different way of thinking, a little market research, and being creative in your marketing strategy. Sales & Marketing Remember, if someone is selling a white shirt for $ 120 or more, you can sell a personalized coffee cup for $ 15 to $ 20 easily. A&E

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